Guys want to do a quick video on two new bills that are pending in in the us. Senate. That are going to affect the heating and air industry. So the making of this video both of these bills are currently pending in the senate finance committee.

So i wanted to go through these so if you watch my videos you'll know what these are and i believe that they're going to affect the industry. I don't know if they're going to affect the industry as drastically as some of the laws passed in the past or as much as the new efficiency standards that are coming out and things like that and then of course during the making this video. We've begun the phase out of 410a refrigerant this year. Both of these bills will affect the industry at least a little bit in the sense that some of the products that you're used to being able to buy you won't even be able to buy anymore so let's talk about what the two bills are first and that way i could fill in a few blanks at the end.

The first one is called installing clean efficient energy hastens. Our transition or they've abbreviated it as icy hot and it's sponsored by a democrat massachusetts. Senator. Ed markey.

And it would amend the energy policy act of 2005 by expanding an existing rebate program with 10 billion dollars in funding from the 2023 through 2030 fiscal years four other democratic senators have signed on to the bill. The bill would make it to where manufacturers and distributors would be eligible for rebates for heat pumps heat pump water heaters and certain heat pump close dryers induction or non induction electric stoves smart electric panels and other electrical appliances as determined by the secretary of energy. The interesting thing about both of these bills they're pushing electricity they want everything in your home to be powered by electricity versus fossil fuels which is interesting because if you go back not to get political i don't really care you know where you fall. But if you were to go back a decade or two the democratic party was pushing uh natural gas big time and so i'm not sure i don't really keep up with politics enough to know what's changed or anything like that but that's what both of these bills are meaning to do manufacturing distributors receiving rebates would be required to pass at least 90 percent of their value onto the consumers in the form of lower prices for those items the icy hot act would transition homes across america away from costly dirty fossil fuels towards cheaper cleaner renewable energy marquee said in a press release with this legislation we can put americans to work manufacturing.

The clean energy. Revolution the bill would require electrification products to meet its definition of us. Made in order to qualify for the rebates that means that at least 55 of the components of each product would have to be mined produced or manufactured in the us. So that's a good thing they are actually pushing for jobs here in the us.

The second bill. The heating efficiency and affordability through tax relief act. And they're abbreviating. This one.

It's keat r. So h. E. A t r.

And it's sponsored by senator. Amy kublicar. Democrat from minnesota would offer manufacturers tax credits for making heat pumps and heat pump water heaters six other democratic senators have also signed on to this bill tax credits under the heat are act an amendment to the internal revenue code would be as high as 800 for each energy star qualified heat pump water heater and as high as a thousand dollars for each residential space heating heat pump that meets energy star criteria credits for commercial and industrial heat. Pumps based on btu h.

Output could be even higher so here's the thing if you're in the market for a heating and air system. If you're looking at more of a more efficient system higher seer. Then this might play a role in your decision. Making knowing that these rebates might be coming out soon the legislation is a win win reducing energy costs for consumers while strengthening access to clean energy efficient heating solutions said kublacar in a press release.

A spokeswoman for the air conditioning heating and refrigeration institute ahri. Which a lot of you know that i talk about the ahri. All the time it represents hvac equipment. Manufacturers said.

The organization had no position on either of the acts or bills. Which i find interesting because i do again. I think these are going to affect our industry somewhat rebates you know they're basically throwing money at consumers saying. Hey if you go this route versus that route.

But this could also open the door for other things in the. Future the two new bills pending in the us senate are designed to speed the electrification of hvac systems decrease the amount of fossil fuels such as natural gas and oil used in buildings and cut carbon emissions both would offer financial incentives for the production of certain electric powered hvac equipment particularly heat pumps both geothermal and air source and heat pump water heaters. The bills represent another push from dc for greater energy efficiency in june. The department of energy proposed phasing out the manufacture of non weatherized residential furnaces of less than 95.

Efficiency. And president. Joe biden. Invoked the defense production act in an effort to increase.

The manufacturing availability of energy saving technologies. Including heat pumps and solar powered components. So another thing. I would throw out there is i tell you if you're not on board with heat pumps.

You might have to be you might have to get on board with it because i have customers that have specifically said that they don't want a heat pump for one reason or another maybe. It's past experiences maybe they want a higher heat rise in their home. A lot of my customers. Especially if they're from a northern state.

Where they're used to hotter heat rises and they just want that added heat in their home. They will usually stray from going with the heat pump system now. I've done videos just very recently uh where we've talked about how heat pumps have come a long way and i have one in my home. I i would say 90 of what we do in here in virginia are heat pumps regardless of what the backup heat source is so the last thing.

It says in this article is at the heating and air conditioning and refrigeration distributors international. Alex ayers. The director of government affairs said that while icy hot looks on the surface like it would help consumers the quotas on who the money goes towards were designed by policy makers with no understanding of the wholesale industry. I'm going to get to that in just a second so hold on to the end of this video ayers pointed out to incentives.

That he said work. Better such as one of the 2017 tax reform bills that allowed small business to expense the full cost of an hvac system replacement. There is no reason for the senate to try and reinvent the will and try to accomplish policy goals completely unrelated to heat pumps or hvacr industry through this legislation. He said so anyway hopefully you don't hear that i've got somebody working outside and they're using one of those leaf blowers.

I just want to end with this i'm not saying that these bills are good or bad. Especially. If you are already looking at doing a higher seer heat pump appliance in your house. You might be very appreciative of these rebates.

But i will say that i think that it's interesting that a lot of these folks pushing these policies making these laws. I would dare say that they probably have not even had a conversation with someone like myself or someone in the industry. And the reason. I believe that is a lot of my colleagues.

A lot of you guys that watch these videos will sometimes point out that your customers don't want higher seer systems. They don't want higher efficiency stuff for one reason or another maybe they don't see the value there maybe now they will if they're getting a little help with rebates. I don't know i think sometimes when they're pushing this stuff. Obviously we know how you know laws work.

We know how politicians work they're probably getting money from someone pushing this for one reason or another. But i would think that if they're going to do something that's going to affect the heating and air market in this way. I would love for them to have a conversation. I'm not saying they got to call me.

I'm nothing special some of the higher ups in our industry. Maybe have a conversation with some of the executives from some of the leading heating and air brands. Maybe have a conversation with some of the folks that have way bigger youtube channels than i do that do heating and air stuff. I am curious though if you're watching this what are your thoughts comment down below.

I'd love to know where we're going from here. What do you think is this just the beginning are we going to see more laws like this we're already under a crunch. Here. Where prices of everything seem to be rising inflation and of course now they're phasing out technologies and things are going up in price because of that 410a refrigerant just in the last five years.

I mean. It's multiplied. I don't know maybe this is a sign of things to come i just started doing youtube a few years ago. And i feel like i do a lot more videos on things that are bad in the industry than i do on things that are good someday i'll get to do a video.

Where i say oh my gosh. This is coming out. Oh yay you know i feel like i don't get to ever do that anymore so anyway. Thanks for watching hit that subscribe button.

We'll see you next time.